I think the episode paid off for any trouble it gave you. It came around nicely.
Some of your background characters, like those cityfolk, do the job but they leave something to be desired I think. However, I didn't care much because the foreground characters had such pleasing animation... I know background characters are a chore...
Your framework is improving, and it's nice to watch occur between episodes. This is one of my favourites thus far. Your style is really shaping up.
The music I found had more variety this time around. It was nice to get a breather from the usual sound that accompanies your work.
The story was interesting. You and that slow world build. I'm quite eager to see more.